The correct answer is Loans to the Peasants. Important PointsTaccavi loan was a short-term loan given to poor farmers to purchase seeds, fertilizers, equipment and for other agriculture purposes. Taccavi loans and are lent by the Government during emergencies or distress like famine, flood, etc. This was introduced to enhance the productivity of crop cultivation and help poor farmers to increase the income. They were specifically granted to tackle damage of crops due to natural calamities and other forms of crisis like drought. It was introduced in the late 1950s. It was an important agricultural institution during Mughal times. The rate of interest charged against such a loan is as low as 6%.